Disney Merges Hulu + Live TV with FuboTV in $220 Million Deal, Takes 70% Stake

Jan 6, 2025, 01:50 PM

Disney has agreed to merge its Hulu + Live TV service with FuboTV, forming a combined live TV streaming venture operating under the Fubo name. The new entity will be 70% owned by Disney and 30% by FuboTV, with FuboTV CEO David Gandler leading the company. The companies will make a $220 million aggregate cash payment to FuboTV as part of the deal. The merger aims to create the second-largest digital pay-TV provider, rivaling YouTube TV. As part of the agreement, FuboTV will drop its lawsuit seeking to block Venu Sports, the sports streaming joint venture from Disney, Fox Corp., and Warner Bros. Discovery. The combined service is expected to have over 6.2 million subscribers. Disney has also committed to provide a $145 million term loan to FuboTV in 2026 as part of the deal. Following the announcement, FuboTV's stock surged over 200%. The transaction is anticipated to enhance Disney's position in the streaming market by consolidating its live TV offerings under the Fubo brand.